Contrary to expectation, Yam is working on making protocol changes despite launching its V3 rebase successfully.
Yam, the food-based Decentralized finance (DeFi), just finished it’s first-ever rebase after the V3 launch.
Yam did a relaunch on September 18th after it failed on its V2 version last month. The failure was caused by a bug that made the token’s supply ten times higher than it was designed to be.
The Yearn.finance protocol style is experimenting on fair farming, governance, and elasticity. Yam strives to maintain a peg of 1yUSD per token through supply rebasing at 12-hour intervals. The rebase will depend on the price of Yam, such that if it is between $0.95 and $1.05, no adjustment will be needed.
Yam V3 had it’s first rebase on September 21st, which led to an additional $571,000 worth of yUSD to its accounts. That increased the Yam token holders’ position to 2.49 times higher that led to the drop in the price of Yam from $20 to $7.
What the rebase means
Although Yam had a rebase, it still believes that it has not fully optimized its protocol. It highlighted that V3 replicated most of the features from V1 to increase the efficiency of governance and auditing. There are further improvements that are needed to make governance efficient while incentivizing liquidity to improve the protocol.
From the relaunch of Yam, the company will gather live data on the current protocols, use parameters for optimum functionality, and work on the treasury to extend high yield stablecoins.
In the future, the rebasing will be done with higher frequency to reduce the impact of purchases made by the Yam treasury on the market. The new system will make sure there is a stable liquidity level for any treasury purchases.
Yam’s developers are working on launching on-chain governance, on-chain analytics, upgrade the Yam’s Uniswap routing, and give more detailed documentation of everything. The analytics will be on the market cap, treasury growth, and rebasing, which will help enact transparency. UNiswap is not able to do effecient routing when one is purchasing Yam. If that is fixed then there will be more purchases of Yam, helping it to grow.
Yam is also working on showing more appreciation to the community contributors who include developers, community moderators, and infrastructure contributors.
Changes in the governance system will do away with any obstacles that are currently in governance participation – it is expected that the upgrade will be done in a few days.